Key points

National Famers' Federation chief Matt Linnegar said the campaign sent "all the wrong messages".

Farmers threatened to boycott Coles over the shopping bags.

Animals Australia has withdrawn the shopping bag campaign after discussions with Coles, but will launch TV ads.

NFF chief executive Matt Linnegar had said the campaign sent "all the wrong messages".

"That same group has targeted animal agriculture in many ways across this country and had a steep and deep effect on many farmers and producers across rural Australia," he said.

Mr Linnegar says he is glad the campaign has ended.

Animals Australia says the take-home message for shoppers is that farmers are opposed to an initiative that aims to improve the lives of animals produced for food.

Spokeswoman Lisa Chalk says a television campaign starting next week will replace the bags.

"This has only just increased our determination to provide those animals with representation. We aren't taking a backward step, we are simply changing direction and changing tack," she said.

"That's why we are putting together a national television advertising campaign to air this week that will show consumers what the National Farmers Federation has fought so hard to hide and that is what happens to animals in these production systems."

Yesterday, Animals Australia director Glenys Ooogjes said the campaign was not anti-farmer but pro-animal welfare.

She said the shopping bag campaign provided the key to ending cruel factory farm practices.

"In the UK the supermarkets have lead the change. They've driven change for animals and we really believe that it's the retailers here in Australia that will do that," she said.

"What's happened unfortunately is the rural industry leaders here have resisted all change."